The news of our week past was that there was little news. Outside the oil patch the world slowed down and will finally reach a halt on Monday the first day of 2018. Two supply disruptions of sizable proportions hit the Brent market and as is usually the case, the knock on to its competitor WTI was immediate. Repairs to the “Forties” pipeline that lands south of Aberdeen will take another week. The pipeline explosion and damage to the Libyan facilities will take a long time to bring back production online. As price stays high, cheating amongst the cartel will increase, pushing inventories up and price down. If we don’t see a big increase in inventories it will stay above $60 for a bit of time. If inventories swell, sell oil.
Markets will restart with a bang after the holidays
Weekly Report - 31/12/2017